Direct Material Price Variance: Direct material price variance is the variation in the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased. Direct Material Efficiency Variance: Direct material efficiency variance is the variation in the budgeted quantities and the actual quantities purchased at a specific price. Direct Labor Efficiency Variance: Direct labor efficiency variance is the variation in the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate. Journal entries of material and manufacturing labor variance.

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Answer 1

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 7, Problem 7.26E

1.

To determine

Direct Material Price Variance:

Direct material price variance is the variation in the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance:

Direct material efficiency variance is the variation in the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance:

Direct labor efficiency variance is the variation in the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

Journal entries of material and manufacturing labor variance.

2.

To determine

Standards:

Standards are the planned level of output for a particular period of time decided at the beginning of that period and are used as a comparison tool with the actual performance.

Advantages of standard costing journal entries over normal costing journal entries.

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The following standards for variable overhead have been established for a company that makes only one product: Standard hours per unit of output 6.6 hours Standard variable overhead rate $13 per hour The following data pertain to operations for the last month: Actual hours 9,800 hours Actual total variable overhead cost $125,210 Actual output 1,460 units Required: A. What is the variable overhead rate variance for the month? B. What is the variable overhead efficiency variance for the month?

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Financial accounting question

Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 7, Problem 7.26E

1.

To determine

Direct Material Price Variance:

Direct material price variance is the variation in the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance:

Direct material efficiency variance is the variation in the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance:

Direct labor efficiency variance is the variation in the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

Journal entries of material and manufacturing labor variance.

2.

To determine

Standards:

Standards are the planned level of output for a particular period of time decided at the beginning of that period and are used as a comparison tool with the actual performance.

Advantages of standard costing journal entries over normal costing journal entries.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 7, Problem 7.26E

1.

To determine

Direct Material Price Variance:

Direct material price variance is the variation in the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance:

Direct material efficiency variance is the variation in the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance:

Direct labor efficiency variance is the variation in the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

Journal entries of material and manufacturing labor variance.

2.

To determine

Standards:

Standards are the planned level of output for a particular period of time decided at the beginning of that period and are used as a comparison tool with the actual performance.

Advantages of standard costing journal entries over normal costing journal entries.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 7, Problem 7.26E

1.

To determine

Direct Material Price Variance:

Direct material price variance is the variation in the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance:

Direct material efficiency variance is the variation in the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance:

Direct labor efficiency variance is the variation in the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

Journal entries of material and manufacturing labor variance.

2.

To determine

Standards:

Standards are the planned level of output for a particular period of time decided at the beginning of that period and are used as a comparison tool with the actual performance.

Advantages of standard costing journal entries over normal costing journal entries.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 7, Problem 7.26E

1.

To determine

Direct Material Price Variance:

Direct material price variance is the variation in the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance:

Direct material efficiency variance is the variation in the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance:

Direct labor efficiency variance is the variation in the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

Journal entries of material and manufacturing labor variance.

2.

To determine

Standards:

Standards are the planned level of output for a particular period of time decided at the beginning of that period and are used as a comparison tool with the actual performance.

Advantages of standard costing journal entries over normal costing journal entries.

Answer 6

Chapter 7, Problem 7.26E

1.

To determine

Direct Material Price Variance:

Direct material price variance is the variation in the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance:

Direct material efficiency variance is the variation in the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance:

Direct labor efficiency variance is the variation in the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

Journal entries of material and manufacturing labor variance.

Answer 7

Chapter 7, Problem 7.26E

1.

To determine

Direct Material Price Variance:

Direct material price variance is the variation in the budgeted per unit cost of raw material and the actual per unit cost multiplied by the number of units purchased.

Direct Material Efficiency Variance:

Direct material efficiency variance is the variation in the budgeted quantities and the actual quantities purchased at a specific price.

Direct Labor Efficiency Variance:

Direct labor efficiency variance is the variation in the actual time consumed in manufacturing unit and the standard time allowed or the budgeted time for the manufacture of a unit multiplied by the standard direct labor rate.

Journal entries of material and manufacturing labor variance.

Answer 8

2.

To determine

Standards:

Standards are the planned level of output for a particular period of time decided at the beginning of that period and are used as a comparison tool with the actual performance.

Advantages of standard costing journal entries over normal costing journal entries.

Answer 9

2.

To determine

Standards:

Standards are the planned level of output for a particular period of time decided at the beginning of that period and are used as a comparison tool with the actual performance.

Advantages of standard costing journal entries over normal costing journal entries.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 7 - What is the relationship between management by...Ch. 7 - What are two possible sources of information a...Ch. 7 - Distinguish between a favorable variance and an...Ch. 7 - What is the key difference between a static budget...Ch. 7 - Why might managers find a flexible-budget analysis...Ch. 7 - Describe the steps in developing a flexible...Ch. 7 - List four reasons for using standard costs.Ch. 7 - How might a manager gain insight into the causes...Ch. 7 - List three causes of a favorable direct materials...Ch. 7 - Describe three reasons for an unfavorable direct...

Standards: Standards are the planned level of output for a particular period of time decided at the beginning of that period and are used as a comparison tool with the actual performance. Advantages of standard costing journal entries over normal costing journal entries.

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Chapter 7 Solutions

Standards:

Standards are the planned level of output for a particular period of time decided at the beginning of that period and are used as a comparison tool with the actual performance.

Advantages of standard costing journal entries over normal costing journal entries.